In an article published by Valor International, partner Luiz Felipe Calabró notes that the legislative proposals currently under discussion in Congress to strengthen prudential and conduct oversight in the financial market are largely focused on changes to the regulatory structure and do not offer short-term solutions.
Calabró suggests prioritizing the strengthening of self-regulatory frameworks in coordination with formal regulation as a way to achieve more immediate results and reduce pressure on public finances, particularly in a context of fiscal deficit and competition with other priority areas such as healthcare, education, and public security. He emphasizes that solutions must be short-term so as not to hinder innovation. In his view, broader structural debates on changes to the regulatory model may take time to yield results, whereas reinforcing self-regulatory mechanisms in coordination with regulators can help expand prudential and conduct oversight capacity in the short term.
Access the article at the link.
